Bloomberg on a Moody’s report dated October 17:
- About 300 million metric tons of new and expanded iron ore supply will come on stream over the next few years
- Global steel-production growth in 2014 remains muted with China, the key driver of consumption, continuing to slow
- “Iron ore prices have collapsed,” Moody’s said in the report
- “With slowing global steel-production growth rates, iron ore prices remain vulnerable to the downside and we expect continued volatility.”
- “Downward rating actions for iron ore producers could result as Moody’s reassesses the impact of a protracted pricing weakness”
Says Fortescue Chief Executive Officer Nev Power on October 16, though:
- Stockpiles in China are contracting
- Shows demand is outstripping supply and high-cost production is leaving the market
- Fortescue (the world’s fourth-biggest exporter of iron ore) said shipments rose 66% in the three months to September 30 as it expanded output from Western Australia mines
